Banking Surrogate Product Of ICICI Bank
The Banking Surrogate means ascertaining the eligibility of the customers only on the basis of his banking statements. This product is specially designed for the customers who earn variable income/ profits per month i.e. for the self-employed customers. The fixed income earners like those of salaried class are not considered under this product to qualify for higher eligibility.
Important Highlights
- The self-employed can get a loan even without ITR or any other financial documents.
- The loan can be applied only on the basis of banking statements.
- The income assessment of the self-employed is done only on the basis of banking statements.
- Multiple bank accounts can be considered for getting higher loan eligibility.
- There is no capping on the number of multiple bank accounts to be considered for the enhancement of the loan eligibility.
- The current account for the self-employed is mandatory except the self-employed professionals such as doctors, CAs, CSs & architects.
Basic parameters of the banking surrogate:
- Application: The banking surrogate can be considered in the products of home loan, mortgage loan/loan against property, NRP loan i.e. non-residential premises loan, home loan balance transfer of home loan, mortgage loan balance transfer, NRP balance transfer, home loan top-up, mortgage loan top-up & NRP top-up. (Top-up loans are subject to the income eligibility and to the market value of the property).
- Loan Amount Criteria: The customer can apply for a minimum loan amount of Rs.10lakhs and a maximum loan amount of Rs.3crs. However, the ceiling limit for self- employed professionals such as doctors (MBBS/BDS/MD/MS), chartered accountants, company secretary, and architects, on the basis of their savings accounts only is Rs.50kakhs.
- Loan To Value (LTV): LTV refers to the percentage of the property’s market value that a lender can finance through loans.
For home loan – LTV is 70%
For mortgage loan against residence – LTV is 60%
For NRP – LTV is 65% if self-occupied & 55% if not self-occupied. - Loan Tenure: Maximum loan tenure allowed under the banking surrogate is for 15 years. However, for the tenure of more than 10 years of in-home loan and NRP, the LTV percentage is lowered by 5%.
- NRP under-construction status: If the customer buys an NRP under-construction property, for him to qualify for a loan under the banking surrogate, the completion status of the under-construction property must be 75% for CAT A and B builders & 85% for CAT C builders.
- Account’s credit transactions: The banking statements of the customer must reflect a minimum of 3 business credits per month in the current account and a minimum of 3 transactions per month in the savings account.
- The ADB calculation and its applicable ratio: ADB stands for average daily balance. It is the internal calculation method of the bank for determining the loan eligibility of the customer on the basis of his banking transactions.
- To calculate ADB banks consider the total balance of the customer’s banking account as on the dates 1st, 11th, and 21st of all months and dividing it by 36.
ADB = (Total Balance of 1st, 11th, and 21st of all months)/36 - The ADB figure so derived is then used to determine the eligible EMI.
Eligible EMI = ADB/ ADB-EMI Ratio
The applicable ADB ratio depends on the ADB range. Mentioned below is the grid of ADB range and its applicable ratio along with the maximum loan amount as per the ADB range.
| ADB Range (10 years) | Applicable Ratio | Maximum Loan Amount |
| Less than or equal to 107603 | 2 | Upto Rs.25 Lakhs |
| Greater than 107603 and equal to or less than 286942 | 3 | Greater than Rs.25 Lakhs and upto Rs.50 Lakhs |
| Greater than 286942 | 4 | Greater than Rs.50 Lakhs and upto Rs.3 Cr |
- The eligible EMI is then used to derive the loan eligibility of the customer by dividing the eligible EMI by the per lakh EMI.
Loan Amount = Eligible EMI/ EMI Per Lakh
8. Credit Summation: In banking, surrogate credit summation is yet the second calculative method in determining the loan eligibility of the customer on the basis of his banking transactions. To calculate credit summation banks consider every single credit entry in the banking account of the customer for consecutive 12 months and dividing the figure by 2 i.e.considering only 50% of the derived number.
Total Credit Summation for 12 months * 50%
How to calculate the loan eligibility
In banking surrogate the income eligibility is calculated as LOWER OF THE THREE:
- Eligibility as per Average Daily Balance
ADB = (Total Balance of 1st, 11th and 21st of all months)/36
Eligible EMI = ADB/ ADB-EMI Ratio
Loan Amount = Eligible EMI/ EMI Per Lakh - Eligibility as per Credit Summation
Total Credit Summation for 12 months * 50% - Eligibility as per LTV = Market Value * Applicable LTV
With this banking surrogate, all self-employed customers and the self-employed professionals now can earn higher eligibility even with the lower net profits in the ITR. Speak to our experts on 9321020476 or log on to https://www.loanfasttrack.com/ for additional details. Loanfasttrack is a direct sales associate with ICICI bank.
Loanfasttrack is a Mumbai based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, business Loan, unsecured business loans, home loan transfer, top-up loans, car loans, educational loans, and loan transfers. It is an authorized channel for ICICI
It also helps you:
√ To find the best bank for home loan
√ To get lowest home loan rates in Mumbai
√ To get an instant loan in Mumbai
√ To get an instant personal loan in Mumbai & business loan in Mumbai
√ To make you qualify for the maximum loan against property eligibility
√ To get a low-cost home loan balance transfer
√ To get assured low-interest rates for the loan against property in Mumbai